In today’s briefing:
- PEC Ltd. (PEC SP): 5th May Vote On Liberty’s Offer
- TRYT (9164) – Limit Up On Report of Round 2 Bidding; A Growth Multiple Gets You a High Price
- Grab Holdings (GRAB US) – New Products with a Heavy Hint of AI
- Canvest (1381 HK): Scheme Vote on 12 May
- Wintermar Offshore Marine (WINS IJ) – Ahoy! Recovery Ahead
- Nauticus Robotics, Inc.: On the Anvil of Commercialization
- Ryobi (5851 JP) – OP Recovery Expected in FY12/25
PEC Ltd. (PEC SP): 5th May Vote On Liberty’s Offer
- Back on the 17th Feb, PEC Ltd. (PEC SP), a plant and terminal engineering specialist, announced an Offer from Allied Energy Services, an engineering entity under the Liberty Group.
- Liberty offered S$0.84/share (not final), including a AS$0.20/share special dividend, a 12.8% premium to undisturbed; but more like a >35% premium. Irrevocables from the board of 63.38% had been secured.
- The Scheme Doc is now out, with an EGM on the 5th May, with payment on or before the 20th June. The IFA (Deloitte) says “fair & reasonable“.
TRYT (9164) – Limit Up On Report of Round 2 Bidding; A Growth Multiple Gets You a High Price
- TRYT (9164 JP) was bought by EQT years ago and IPOed on TSE Growth in July 2023 at ¥1,200/share. The shares tanked on Day 1, almost reached ¥1,000 days later.
- Then they fell, and fell some more, reaching the ¥370s early in Q1, then again post Trump tariff announcement. EQT still holds ~60%. Shares closed at ¥374 on 16 April.
- In February, there were noises about EQT putting the business up for sale, reportedly seeking an offer close to ¥1,200/share. Now there are noises of a Second Round.
Grab Holdings (GRAB US) – New Products with a Heavy Hint of AI
- Grab hosted “GrabX” in Singapore and online to showcase a range of AI-driven product offerings that promise to be future growth drivers for the company.
- GrabFood For One and Shared Saver both have the potential to attract significant new business, but there was also the launch of AI-assistant Maya for Merchants to drive orders.
- Additionally, Grab Unlimited continues to grow and be transformed into a fully-fledged loyalty program. Valuations are attractive, and Grab is set to make a net profit this year.
Canvest (1381 HK): Scheme Vote on 12 May
- Canvest Environmental Protection Group (1381 HK)’s IFA opines that Grandblue Environment Co A (600323 CH)’s HK$4.90 offer is fair and reasonable. The vote is on 12 May.
- Key conditions include approval by at least 75% of independent shareholders (<10% of independent shareholders’ rejection). Shareholders with blocking stakes will be supportive.
- This is a done deal. At the last close and for a 10 June payment, the gross/annualised spread is 2.3%/18.3%.
Wintermar Offshore Marine (WINS IJ) – Ahoy! Recovery Ahead
- Wintermar Offshore Marine booked a strong set of FY2024, confirming the ongoing recovery of the offshore oil & gas shipping segment and especially demand for higher-tier vessels.
- The company continues to build its fleet with several vessels coming on stream in FY2025 and FY2026, driven by optimism around ongoing investments in offshore oil & gas in Indonesia.
- Wintermar Offshore Marine intends to sell its low-tier vessels and invest in more high-tier vessels this year, helping to drive future growth.
Nauticus Robotics, Inc.: On the Anvil of Commercialization
- Last year was transformational for KITT, with its strategy shifting to commercializing its technology from its prior focus on research and development.
- The company expects 2025 “will continue to be a year of change.”
- On the earnings call and callback, our focus was on sizing the opportunity, the outlook for the year given long lead times and seasonality in the business, and the competitive landscape.
Ryobi (5851 JP) – OP Recovery Expected in FY12/25
- FY12/24 sales rose 3.8% YoY to ¥293.31bn while operating profit dropped -22.3% to ¥9.49bn, surpassing previously revised down forecasts.
- Sales growth was boosted by the weak yen. However, the rise was limited by slowing auto production by Japanese, US and European carmakers in China and the impact from new model certification irregularities discovered at domestic automakers in Japan.
- OP was hit by rising costs, especially labor. However, the company is expecting a sharp rebound in OP growth in FY12/25 thanks to starting production of new products in Japan, a recovery in customers’ China output and starting to pass on rises in labor and energy costs, rather than only aluminum price fluctuations.
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